RBI Governor sounds alarm on cryptocurrencies

RBI Governor Shaktikanta Das sounded alarm on cryptocurrencies, cautioning investors on the potential pitfalls of digital currency. He said Cryptocurrencies are a very serious concern from a macroeconomic and financial stability point of view. Shaktikanta Das's comments come at a time when the craze for cryptocurrencies is growing among Indian investors, especially the retail ones. The craze for cryptocurrencies in India has grown after Supreme Court overturned the RBI order, which effectively lifted the ban on cryptocurrency trading in India.The central government is yet to enact a law on cryptocurrencies. It is in consultation with industry experts and other stakeholders over the issue. After several rounds of caution, the government might largely want to set severe limits on the trading of cryptocurrencies in India in the larger public interest.

Commenting on the state of Indian economy, Shaktikanta Das said he sees a very positive outlook as far as India's growth is concerned, even as there is Covid uncertainty.  Das further said market evolution of interest rate seems to be quite orderly, while expressing confidence that adequate forex reserves will given a cushion to deal with volatility. On the investment scenario, Das said there are signs of investment pick-up and that demand for bank credit will pick up from next year onwards. The RBI chief further added that globally geo political tensions are posing new challenges and have to be watchful.